Financial Watch

Oil prices dropped for the third straight day in New York on Thursday, amid continuing worries about the stability of the eurozone and a stunning sell-off in the US financial markets.

Crude futures had nudged higher earlier in the day but headed south as the euro dropped under 1.27 dollars, reaching the lowest level since March 2009.

New York’s main contract, light sweet crude for delivery in June, closed down 2.86 dollars to 77.11 dollars a barrel. Over the last three trading sessions, it has fallen 10.5 percent.

US stocks drifted higher on Monday amid uncertainty over fraud charges against top Wall Street bank Goldman Sachs.

The Dow Jones Industrial Average rose 25.02 points (0.23 per cent) to 11,043.68, recovering from a more than 100 points’ plunge on Friday when the Securities and Exchange Commission (SEC) announced civil fraud charges on Goldman.

The stock market may be sitting near 18-month highs, and volatility has declined sharply, but that doesn’t mean investors aren’t worried about a downturn in the market.

Volatility has declined to a 22-month low, making it cheap for investors to bet on or hedge against a big drop in the market by buying S&P index put options as a hedge.

The Chicago Board Options Exchange Volatility Index, Wall Street’s favourite yardstick of investor sentiment, fell to a low of 16.21 on Tuesday, near levels not seen since May 2008, just prior to the steepest part of market sell-off.

Investors eager to put their money to work in the stock market sent shares of two technology companies and a bank soaring on their first day of trading.

Chip maker MaxLinear and broadband equipment provider Calix are set to benefit as technology spending increases. Regional bank First Interstate BancSystem is profitable. All were priced right, analysts say.

Each company posted double-digit gains on its first day of trading, despite a down day for the overall market. It is the IPO market’s best day since the financial crisis began.